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World stock markets and oil prices rallied Friday, fuelled by hopes for global growth following a surprise rate cut by China and as the European Central Bank indicated it would step up its asset purchases to boost the Euro zone economy.
The jump in oil prices took beaten-down Brent back above $80 a barrel. US interest rates were little changed as the dollar gained, and the euro declined.
Top Wall Street stock indices, including the Dow Jones industrial average and benchmark S&P 500 that closed at record peaks Thursday, advanced nearly one per cent in morning trading and were on track for a fifth week of gains.
European shares, oil and other growth-sensitive commodities all leapt on China's move to cut rates to 5.6 per cent, following a string of recent data that showed its giant economy was heading for its worst year in almost quarter of a century.
China's rate reductions were its first in more than two years and came as ECB head Mario Draghi spoke of his determination to use more aggressive measures, such as large scale asset purchases, to ensure the Euro zone doesn't slump into a new crisis.
Both the Euro zone and China have lagged the momentum of the United States, stimulus-driven Japan and faster-growing Britain over the last month, but a ramping up of the ECB's rhetoric and Beijing's actions will stoke hopes of a turnaround.
Germany's DAX, France's CAC and the FTSE Eurofirst 300 were all up between 2 and 3 per cent by 1430 GMT.
The MSCI world equity index, which tracks shares in 45 nations, was up 0.85 per cent.
The dollar index was up 0.60 per cent, as the euro gave up nearly 1 per cent and was last at $1.1224.
The yen was up against the dollar. Japanese Finance Minister Taro Aso said Friday the yen's fall over the past week was "too rapid." It was one of the strongest warnings against a weak yen since the aggressive stimulus efforts began two years ago and saw the currency leap off a 7-year low to 117.76 The rate cut by China, the world's No. 2 economy, added to a positive mood among oil traders, many of whom expect the Organization of the Petroleum Exporting Countries to trim production at what looks to be a landmark meeting in Vienna on November 27.
Oil jumped and Brent was last up $1.03 to $80.38 a barrel as it surged towards its first weekly rise since mid-September.
Copper and gold also got a lift, with the red metal up 1 percent and spot gold climbing back over $1,200 to $1,204.20 an ounce, as traders cheered the prospect of more global stimulus.
